Advertisement

Property Investment

  • David Isaac
Chapter
Part of the Macmillan Building and Surveying Series book series (BASS)

Abstract

A property or building can be owner-occupied or rented; the latter being an investment property. In the present market (1996) it may of course be vacant, resulting from being surplus to the owner’s requirements or a poor investment! A large proportion of property is owner-occupied but most of the conventional texts and theories in property are applied to the investment market. The investment market for property cannot be seen in isolation from other investment markets. The application of funds to property has to reflect competition from other forms of investment. The decision to invest in a particular area will be a comparison of return and security and thus knowledge of alternative investments and their analysis could be very important. The application of financial techniques to property investment can also be important and this can clearly be seen in the securitisation and unitisation of property which is a key area of development in property investment. Another important point to be made concerns the nature of the lender and the property to which finance is applied. At its simplest, the financial arrangement may deal with an individual purchasing a single property with a single loan, but it is usually more complex. Finance is generally raised by corporate entities, such as property companies, using existing property and other assets as collateral for the purchase of a portfolio of assets which may include property assets but not exclusively. Finally, it is important to realise the significance of property and property investment to the economy. The importance can be shown in three different ways: as a factor of production, as a corporate asset and as an investment medium.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Barkham, R. J., Ward, C.W. R and Henry O.T. (1995) ‘The Inflation-Hedging Characteristics of UK Property’, Journal of Property Finance, vol. 7, no. 1, pp. 62–76.CrossRefGoogle Scholar
  2. Baum, A. E. and Schofield, A. (1991) ‘Property as a Global Asset’ in P.Venmore-Rowland, P. Brandon and T. Mole (eds), Investment, Procurement and Performance in Construction, RICS, London.Google Scholar
  3. Brett, M. (1983) ‘Indirect Investment in Property’ in C. Darlow (ed.), Valuation and Investment Appraisal, Estates Gazette, LondonGoogle Scholar
  4. Brett, M. (1989) ‘Characteristics of Property’, Estates Gazette, 21 January, p. 14.Google Scholar
  5. Catalano, A. (1996) ‘Property with No Inflation’, Estates Gazette, 8 June, p. 46.Google Scholar
  6. Currie, D. and Scott, A. (1991) The Place of Commercial Property in the UK Economy, London Business School, January.Google Scholar
  7. Darlow, C. (ed.) (1983) Valuation and Investment Appraisal, Estates Gazette, London.Google Scholar
  8. Dubben, N. and Sayce, S. (1991) Property Portfolio Management: An Introduction, Routledge, London.Google Scholar
  9. Estates Gazette (1996) ‘Investment Funds Give Thumbs Up to Property’, Estates Gazette, 28 September, p. 56.Google Scholar
  10. Fraser, W.D. (1993) Principles of Property Investment and Pricing, Macmillan, London.Google Scholar
  11. French, N. (1995) ‘Property — Love it or Leave it’, Estates Gazette, 7 October, pp. 126–7. Hargitay, S.E. and Sui-Ming Yu (1993) Property Investment Decisions, E. & F.N. Spon, London.Google Scholar
  12. Isaac, D. and Steley, T. (1991) Property Vafuation Techniques, Macmillan, London.Google Scholar
  13. Lawson, D. (1995) ‘Inflated Opinions: Barber White Inflation Report’, Property Week, 16 March, pp. 20–1.Google Scholar
  14. Lennox, K. (1996a) ‘Thumbs Up for Property: IPF/EG survey’, Estates Gazette, 20 April, p. 41.Google Scholar
  15. Lennox, K. (1996b) ‘Property on the Up’, Estates Gazette, 7 September, pp. 50–1.Google Scholar
  16. Matysiak, G., Hoesli, M., MacGregor, B. and Nanathakumaran, N. (1995) ‘Long-Term Inflation-Hedging Characteristics of UK Commercial Property’ Journal of Property Finance, vol. 7, no. 1, pp. 50–61.CrossRefGoogle Scholar
  17. Property Week (1994) ‘JLW Review Reveals Most Positive Business Confidence Since 1989’, Property Week, 21 April 1994, p. 10.Google Scholar
  18. Sweeney, F. (1988) ‘20% in Property — a Viable Strategy’, Estates Gazette, 13 February, pp. 26–8.Google Scholar
  19. Tarbert, H. (1995) ‘Is Commercial Property a Hedge against Inflation? A Cointegration Approach’ Journal of Property Finance, vol. 2, no. 1, pp. 77–98.Google Scholar

Copyright information

© David Isaac 1998

Authors and Affiliations

  • David Isaac
    • 1
  1. 1.University of GreenwichUK

Personalised recommendations